IDEAS home Printed from https://ideas.repec.org/p/mod/cappmo/0162.html
   My bibliography  Save this paper

The impact of REI on Italian households’ income: A micro and macro evaluation

Author

Listed:
  • Massimo Baldini
  • Elizabeth J. Casabianca
  • Elena Giarda
  • Lorenzo Lusignoli

Abstract

In 2017, Italy’s government introduced a minimum income scheme, the so-called Income inclusion programme (REI, Reddito di inclusione). REI is a selective, means-tested and conditional scheme that aims at supporting incomes of those more in need. Its structure was recently modified to reach a larger percentage of the poor. In this paper, we simulate the impact of REI on household incomes and evaluate its effects with respect to poverty alleviation and inequality reduction. The analysis is based on the 2015 wave of IT-SILC, the Italian module of European Union Statistics on Income and Living Conditions. Our results show that, under full take-up, REI will reach 45.8% of households in absolute poverty and 22.5% of those in relative poverty. However, it has a mild impact on the incidence of both types of poverty, while it is more successful in reducing their intensity. We also estimate that REI would contribute to raising GDP by 0.14 percentage points through an increase in private consumption.

Suggested Citation

  • Massimo Baldini & Elizabeth J. Casabianca & Elena Giarda & Lorenzo Lusignoli, 2018. "The impact of REI on Italian households’ income: A micro and macro evaluation," Center for the Analysis of Public Policies (CAPP) 0162, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
  • Handle: RePEc:mod:cappmo:0162
    as

    Download full text from publisher

    File URL: http://155.185.68.2/CappPaper/Capp_p162.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jones, Damon & Marinescu, Ioana E., 2018. "The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund," IZA Discussion Papers 11356, Institute of Labor Economics (IZA).
    2. Virginia Hernanz & Franck Malherbet & Michele Pellizzari, 2004. "Take-Up of Welfare Benefits in OECD Countries: A Review of the Evidence," OECD Social, Employment and Migration Working Papers 17, OECD Publishing.
    3. Immervoll, Herwig & Jenkins, Stephen P. & Königs, Sebastian, 2015. "Are Recipients of Social Assistance 'Benefit Dependent'? Concepts, Measurement and Results for Selected Countries," IZA Discussion Papers 8786, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Massimo Baldini & Giulia Mancini & Giovanni Vecchi, 2018. "No country for young people. Poverty and Age in Italy, 1948-2018," Department of Economics 0128, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    2. repec:ces:ifofor:v:19:y:2018:i:3:p:20-29 is not listed on IDEAS
    3. Ugo Colombino & Nizamul Islam, 2018. "Basic Income and Flat Tax: The Italian Scenario," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(03), pages 20-29, October.
    4. Stefano Boscolo, 2019. "The Contribution of Proportional Taxes and Tax-Free Cash Benefits to Income Redistribution over the Period 2005-2018: Evidence from Italy," Department of Economics 0152, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    5. Nicola Curci & Giuseppe Grasso & Pasquale Recchia & Marco Savegnago, 2020. "Anti-poverty measures in Italy: a microsimulation analysis," Temi di discussione (Economic working papers) 1298, Bank of Italy, Economic Research and International Relations Area.
    6. Giovanni Gallo & Michele Raitano, 2020. "SOS incomes: Simulated effects of COVID-19 and emergency benefits on individual and household income distribution in Italy," Working Papers 566, ECINEQ, Society for the Study of Economic Inequality.
    7. Sarah Marchal & Linus Sióland, 2019. "A safety net that holds? Tracking minimum income protection adequacy for the elderly, the working and the non-working of active age," Working Papers 1909, Herman Deleeck Centre for Social Policy, University of Antwerp.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massimo Baldini & Elizabeth J. Casabianca & Elena Giarda & Lorenzo Lusignoli, 2018. "The impact of REI on Italian households’ income: A micro and macro evaluation," Department of Economics 0126, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    2. Momi Dahan & Udi Nisan, 2010. "The effect of benefits level on take-up rates: evidence from a natural experiment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(2), pages 151-173, April.
    3. repec:dau:papers:123456789/1912 is not listed on IDEAS
    4. Jan Gromadzki, 2021. "Labor supply effects of a universal cash transfer," IBS Working Papers 02/2021, Instytut Badan Strukturalnych.
    5. Katharine M. Broton & Kari E. Weaver & Minhtuyen Mai, 2018. "Hunger in Higher Education: Experiences and Correlates of Food Insecurity among Wisconsin Undergraduates from Low-Income Families," Social Sciences, MDPI, Open Access Journal, vol. 7(10), pages 1-25, September.
    6. Feinberg Robert M. & Kuehn Daniel, 2018. "Guaranteed Nonlabor Income and Labor Supply: The Effect of the Alaska Permanent Fund Dividend," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-13, July.
    7. Andrei, Jean & Saša, Stefanovic, 2011. "Especially vulnerable groups in EU and Serbian labor market," MPRA Paper 35285, University Library of Munich, Germany, revised 17 Oct 2011.
    8. David Ribar, 2014. "How to improve participation in social assistance programs," IZA World of Labor, Institute of Labor Economics (IZA), pages 104-104, December.
    9. Pellizzari, Michele, 2006. "Unemployment duration and the interactions between unemployment insurance and social assistance," Labour Economics, Elsevier, vol. 13(6), pages 773-798, December.
    10. Diego Zambiasi & Steven Stillman, 2020. "The Pot Rush: Is Legalized Marijuana A Positive Local Amenity?," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 667-679, April.
    11. Immervoll, Herwig, 2012. "Reforming the Benefit System to 'Make Work Pay': Options and Priorities in a Weak Labour Market," IZA Policy Papers 50, Institute of Labor Economics (IZA).
    12. Robin Boadway & Pierre Pestieau, 2006. "Tagging and redistributive taxation," Annals of Economics and Statistics, GENES, issue 83-84, pages 123-147.
    13. Enrico Fabrizi & Maria Rosaria Ferrante & Silvia Pacei, 2014. "A Micro-Econometric Analysis of the Antipoverty Effect of Social Cash Transfers in Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 323-348, June.
    14. Kati Kuitto, 2018. "Measuring Welfare Entitlement Generosity in Transitional Welfare States: The Case of Post-communist Countries in Central and Eastern Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 203-224, February.
    15. Yuval Mazar, 2018. "The effect of child allowances on the labor supply: Evidence from the early 2000s," Bank of Israel Working Papers 2018.07, Bank of Israel.
    16. Immervoll, Herwig, 2009. "Minimum-Income Benefits in OECD Countries: Policy Design, Effectiveness and Challenges," IZA Discussion Papers 4627, Institute of Labor Economics (IZA).
    17. Amaral, Pedro S. & Tasci, Murat, 2016. "The cyclical behavior of equilibrium unemployment and vacancies across OECD countries," European Economic Review, Elsevier, vol. 84(C), pages 184-201.
    18. Erlend Berg & Maitreesh Ghatak & Manjula Ramachandra & Rajasekhar Durgam & Sanchari Roy, 2013. "Motivating Knowledge Agents: Can Incentive Pay Overcome Social Distance?," CSAE Working Paper Series 2013-06, Centre for the Study of African Economies, University of Oxford.
    19. Francesco Agostinelli & Emilio Borghesan & Giuseppe Sorrenti, 2020. "Welfare, Workfare and Labor Supply: A Unified Evaluation," Working Papers 2020-083, Human Capital and Economic Opportunity Working Group.
    20. Dang, Thai-Thanh & Immervoll, Herwig & Mantovani, Daniela & Orsini, Kristian & Sutherland, Holly, 2006. "An Age Perspective on Economic Well-Being and Social Protection in Nine OECD Countries," IZA Discussion Papers 2173, Institute of Labor Economics (IZA).
    21. Robert M. Feinberg & Daniel Kuehn, 2020. "Does a Guaranteed Basic Income Encourage Entrepreneurship? Evidence from Alaska," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(3), pages 607-626, November.

    More about this item

    Keywords

    microsimulation; minimum income schemes; poverty; Italy;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mod:cappmo:0162. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/demodit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Colombini (email available below). General contact details of provider: https://edirc.repec.org/data/demodit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.